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23% of Brits forced to retire later as pension funds shrink

14 January 2009 / by Rebecca Sargent

Almost a quarter of Brits are having to postpone their retirement plans as the UK economy shrinks, taking pension funds with it, new research from Life Trust has revealed.

As news of shrinking pension funds continue to grab the headlines as the UK's economy and stock market spiral out of control.

The Cost of Retirement report has found that one in 10 adults who are currently working are now expecting to delay retirement by as much as five years.

A further eight per cent expect to delay retirement by between two and four years, and three per cent will postpone for a year.

In fact, retirement delays are becoming so common that according to Life Trust, early retirement could soon be a thing of the past.

The study found that on top of an economic downturn, which is slowly shaving value off hard earned pensions, longevity is becoming a real problem when it comes to funding retirement.

The current life expectancy for men is 85 and 88 for women; however, someone who is 55 today has a one in four chance of reaching 95, and a one in 10 chance of reaching 100, which would require a hefty pension.

In fact, the report found that the average household living to 100 would need £708,500 to live comfortably.

Commenting, Andy Briscoe, CEO of Life Trust said: "Retiring early is a privilege that was, until very recently, an ambition for many people.

"However, with worsening economic conditions coupled with increasing life spans this is now something fewer people are able to afford.

"This is all the more reason for people to understand the true cost of retirement and look at all the options that are available to them for financing their later years."